Moody’s ups power sector outlook from negative to stable

Moody’s ups power sector outlook from negative to stable

Ratings agency Moody’s on Thursday upgraded the outlook for the Indian power sector to stable from negative on the back of a jump in domestic coal production and likely improvement in the financial health of state distribution companies (discoms) by joining the Union government’s UDAY debt restructuring scheme.

“We have changed the outlook for the Indian power sector to stable from negative, because the increased domestic production of coal will ease constraints on fuel supply,” Moody’s Investor Service said in its report titled ‘Power Sector – Asia Pacific: 2017 Outlook – Rising Industry Challenges Are Manageable, Outlook Stable’.

“In addition, the Indian government’s debt restructuring of the financially weak distribution utilities, which are also known as state electricity boards (SEB), will likely improve their financial capacity to make timely payments to power generators,” it said. Read More…

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